Past Paper II

8/3/2019 Past Paper II

1/16

This document consists of12 printed pages and 4 blank pages.

IB08 06_0452_02/2RP UCLES 2008 [Turn over

*328795

7689*

For Examiner's Use

1

2

3

4

5

Total

UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONSInternational General Certificate of Secondary Education

ACCOUNTING 0452/02

Paper 2 May/June 2008

1 hour 30 minutes

Candidates answer on the Question Paper.No Additional Materials are required.

READ THESE INSTRUCTIONS FIRST

Write your Centre number, candidate number and name on all the work you hand in.

Write in dark blue or black pen.

You may use a soft pencil for any diagrams or graphs.

Do not use staples, paper clips, highlighters, glue or correction fluid.

DO NOT WRITE IN ANY BARCODES.

Answerall questions.

You may use a calculator.

Where layouts are to be completed, you may not need all the lines for your answer.

The businesses mentioned in this Question Paper are fictitious.

At the end of the examination, fasten all your work securely together.

The number of marks is given in brackets [ ] at the end of each question or partquestion.


2/16

2

UCLES 2008 0452/02/M/J/08

For

Examiner's

Use

1 (a) Give two reasons why it is important for a business to prepare final accounts orfinancial statements each year.

(i)

(ii)

[2]

(b) Give an example of:

(i) a current asset

(ii) a current liability [2]

(c) Which accounting principle is being applied when a provision for depreciation of a fixedasset is made?

[1]

(d) To which account will the unexplained difference on a trial balance be transferred?

[1]

(e) In which section of the balance sheet will accrued expenses be shown?

[1]

(f) Explain what is meant by a bad debt.

[2]


3/16

3

UCLES 2008 0452/02/M/J/08 [Turn over

For

Examiner's

Use

(g) Marco maintains his petty cash on the imprest system. At the end of April he hasvouchers for expenditure of $70 and a balance in hand of $30.

(i) What is the amount of the imprest?

(ii) How much will Marco draw from the bank to restore his imprest?

[2]

(h) (i) Define working capital.

(ii) Explain why a business needs sufficient working capital.

[4]

[Total: 15]


4/16

4

UCLES 2008 0452/02/M/J/08

For

Examiner's

Use

2 Emilie has a shop and sells goods for cash and on credit. She keeps the cash book herselfbut her accountant writes up her ledger each month.

Emilie puts her cash receipts in a till and enters them into her three-column cash book eachweek. She offers a cash discount of 3 % to her debtors for payment within 15 days.

She buys stock in bulk from a wholesaler for cash and receives trade discount of 5 % fororders in excess of $1000.

She pays wages each week in cash.

On 1 March 2008 Emilies cash book showed cash in hand of $1700 and cash at bank of$3000.

Emilie had the following transactions in one week in March 2008.

$March 3 Cheque received from Jules for goods sold on 20 February 194

4 Sold goods on credit to Henri 2005 Paid cash to Andre for goods purchased 12006 Cheque received from Michel for goods sold on 29 January 857 Cash sales for the week 18507 Wages paid for the week 330

REQUIRED

(a) Make the necessary entries in Emilies cash book to record the above transactions forthe week ended 7 March 2008.


5/16

5


For

Examiner's

Use

Bank

$

Cash

$

Disc.

$

Details

Date

Bank

$

Cash

$

Disc.

$

Details

EmilieC

ashBook

March2008

Date

[11]


6/16

6

UCLES 2008 0452/02/M/J/08

For

Examiner's

Use

(b) Calculate Emilies total sales for the week ended 7 March 2008. Show all workings.

[3]

Emilie had a stock of goods at 1 March 2008 of $1700 and her stock at 7 March was $1650.

REQUIRED

(c) Complete the following extract from Emilies trading account for the week.

EmilieTrading Account for the week ended 7 March 2008

$ $

Sales

Stock at 1 March

Purchases

Stock at 6 March

Cost of goods sold

Gross profit

[6]

[Total: 20]


7/16

7

BLANK PAGE

0452/02/M/J/08 [Turn over

Question 3 is on the next page


8/16

8

UCLES 2008 0452/02/M/J/08

For

Examiner's

Use

3 Ah Sung has a business buying and selling parts for machines.

You are given the following information about part Q.

At 1 April there were 200 units in stock which cost $3.20 each. In the month of Aprilpurchases were:

April Units Cost per unit$

5 100 3.2010 150 3.0027 100 3.00

At 30 April there were 300 units in stock and the net realisable value of each unit was$3.00.

REQUIRED

Calculate the following for part Q. Show all workings.

(a) The value of stock at 1 April.

[3]

(b) The total cost of purchases for April.

[4]

(c) The value of stock at 30 April.

[3]


9/16

9


For

Examiner's

Use

(d) The number of units sold in April.

[4]

(e) The cost of goods sold for the month of April.

[4]

[Total: 18]


10/16

10

UCLES 2008 0452/02/M/J/08

For

Examiner's

Use

4 Solomon is a sole trader and his trial balance at 31 March 2008 was as follows:

SolomonTrial Balance at 31 March 2008

$ $

Bank 4 050Capital 36 000Cash 250Carriage outwards 720Creditors 2 400Debtors 4 000Drawings 24 000Electricity 1 800Motor car 9 600Motor expenses 1 380Provision for depreciation 4 800Purchases 28 800

Rent 6 000Sales 47 500Stock at 1 April 2007 1 500Wages 8 600

90 700 90 700

The following additional information is available:

1 Stock at 31 March 2008 was $1800.

2 A bonus of $400 is to be accrued in the wages account.

3 Depreciation of $2400 is to be provided for the year.

4 Rent includes $1200 paid in advance.


11/16

11


For

Examiner's

Use

REQUIRED

(a) Prepare Solomons trading and profit and loss account for the year ended31 March 2008.

Solomon Trading and Profit and Loss Account

for year ended 31 March 2008

[15]


12/16

12

UCLES 2008 0452/02/M/J/08

For

Examiner's

Use

(b) Write up Solomons capital account for the year ended 31 March 2008.

SolomonCapital account

[4]

(c) Suggest two ways in which Solomon could reduce his loss or increase his profit.

(i)

(ii)

[2]

(d) Suggest two ways in which Solomon could increase the credit balance on his capitalaccount.

(i)

(ii)

[2]

[Total: 23]


13/16

13

UCLES 2008 0452/02/M/J/08

For

Examiner's

Use

5 Tina decides to start a business driving a taxi. She buys a suitable motor car on1 April 2008 but has to spend more money installing a meter. Each year she has to pay fora taxi licence and for taxi insurance.

REQUIRED

(a) In the table below, place a tick () under the correct heading for each item ofexpenditure incurred by Tina.

Capital expenditure Revenue expenditure

Purchase of taxi

Installing meter

Taxi licence

Taxi insurance

Filling taxi with fuel

Servicing engine

[6]

Tina has spent $18 000 on her taxi and decides to charge depreciation using the reducingbalance method at 30% per annum.

REQUIRED

(b) Calculate the depreciation to be charged in Tinas accounts for each of the followingyears.

(i) Year ending 31 March 2009.

[3]

(ii) Year ending 31 March 2010.

[3]

(c) Calculatewhat the net book value of the taxi will be on 31 March 2010.

[2]

[Total: 14]


14/16

14

BLANK PAGE

0452/02/M/J/08


15/16

15

BLANK PAGE

0452/02/M/J/08


16/16

16BLANK PAGE

Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Everyreasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, thepublisher will be pleased to make amends at the earliest possible opportunity.

University of Cambridge International Examinations is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of University ofCambridge Local Examinations Syndicate (UCLES), which is itself a department of the University of Cambridge.

0452/02/M/J/08

Documents

Past Paper II